New Delhi, March 16 -- Mumbai-based non-banking finance company Ecofy Finance has raised Rs 380.5 crore (about $41.1 million) in fresh equity funding from British International Investment (BII) and Finnfund Digital Access Impact Fund I LP.
Existing investors, private equity firm Eversource Capital and Dutch development bank FMO, also participated in the round, Ecofy said Monday.
VCCircle had reported on FMO's planned investment in Ecofy in November last year.
The company said the fresh capital will support expansion across rooftop solar, electric vehicles, and financing for small businesses looking to reduce carbon emissions.
Founded in 2022 by Rajashree Nambiar and Govind Sankaranarayanan, Ecofy focuses on financing green assets for individuals and MSMEs. The company said it currently serves more than 120,000 customers and has built a retail-focused lending platform in the green finance space.
Nambiar, Ecofy's managing director and chief executive officer, said the company was built on the belief that India's green transition will be driven by everyday choices made by households and small businesses.
"Over the last three years, we have created a technology-led, retail-focused green finance platform with strong unit economics, disciplined risk management, and scalable impact. This capital allows us to deepen our offerings, expand distribution, and continue building a high-quality green lending franchise, while delivering attractive, risk-adjusted returns," she said.
The company said the fresh capital will strengthen its balance sheet and support the next phase of growth as it expands retail green lending in partnership with banks and financial institutions.
Ecofy's assets under management stand at over Rs 1,400 crore. The company works with more than 100 original equipment manufacturers and 23 banks and financial institutions. It said that its loan book is fully retail and the capital adequacy ratio stands at about 50% after the fundraise.
Published by HT Digital Content Services with permission from VC Circle.